RACIAL WEALTH INCOME GAP A discussion of how

RACIAL WEALTH & INCOME GAP: A discussion of how our collective history informs our present Tralonne Shorter & Laura Peralta Senior Government Relation Advocates tshorter@networklobby. org & lperalta@networklobby. org 820 First Street NE, Suite 350, Washington, DC 20002 | 202 -347 -9797 | info@networklobby. org | www. networkadvocates. org NETWORKLobby

What Is NETWORK? NETWORK educates, organizes, and lobbies for economic and social transformation

Purpose Discuss basic information on income, wealth inequality, and the racial wealth gap Understand the creation and perpetuation of the racial wealth and income gap

NETWORK’s Racial Justice Shared Agreements Speak up/make space We are each experts on our own experiences Respect confidentiality/continue the conversation Whether or not it has been named, the personal manifestations of power are present Practice self-care Embrace and express discomfort Resolution will not happen today Make space for evaluation of progress and tension

Wealth vs. Income BASIS FOR COMPARISIO N INCOME WEALTH MEANING Money received or earned on a continuous basis, as a return for work or investments. Money or valuable possession accumulated by a person during the course of his life. Flow of money Stock of assets N Income is generated immediately. Wealth is created over time. EXAMPLES Wages/salaries from jobs, interest from savings, etc. Stocks, bonds, ownership of property, fine art WHAT IS IT? ACQUISITIO Income is a stream that helps in the creation of wealth Wealth is what you have minus what you owe

Racial Wealth and Income Gap Activity Instructions: Each group should have 4 participants. Each group receives an envelope and each member selects a race card. Two people will receive “white participant” cards and two people will receive “Black participant” cards. There are three action cards (“money”, “land”, and “lost opportunity”). Each participant takes turns picking up a policy card, reading the card to the group, and then reading the action corresponding to that card. Each round will result in participants gaining or losing one or all three of these cards. During the action step, the reader should pause to allow each player to gain or put down corresponding cards. At the end of the activity, count how many of money, land, and lost opportunity cards each participant has. If your group finishes early, you may use begin with the discussion questions.

NETWORK’s Racial Justice Shared Agreements Speak up/make space We are each experts on our own experiences Respect confidentiality/continue the conversation Whether or not it has been named, the personal manifestations of power are present Practice self-care Embrace and express discomfort Resolution will not happen today Make space for evaluation of progress and tension

Disparities in Net Wealth

Cyclical Nature Debt and Further Loss of Income and Wealth Unequal Taxes Initial Inequalitie s Economic Inequality - the vicious cycle Lower Capacity to Generate Income Low Capital Formation Lower Income, Lower Assets, Lower Quality of Education

Labor Discrimination The National Labor Relations Act or the Wagner Act established protections for workers and allowed them to unionize for higher wages Predominantly Black and brown jobs, such as railroad, domestic, and farmworkers, were excluded from this act #ADDHASHTAG | @ADDHANDLE

Quiz Test yourself: What is the single largest driver of the racial wealth gap? A. Inequities in education B. Inequities in homeownership C. Inequities in income

Driving Factors of Racial Wealth Gap What’s Driving the Increasing Racial Wealth Gap Family Financial. . . 5% Unemployment 9% College Education Percent of the Difference in Relative Wealth Growth between Black and White Families Attributed to Each Factor 5% Household Income 20% Homeownership 27% 0% Source: IASP, 2013 10% 20% 30%

History of the Suburbs

Interstate Highways Act The building of federal interstate highways encourage “white flight” to the suburbs, where families could buy homes with yards. Often times Black urban neighborhoods were gutted to make way for the new highways, which led to further loss of property values and to the development of the “inner city. ” #ADDHASHTAG | @ADDHANDLE

Housing Discrimination Owning a home isn’t necessarily as easy as purchasing a home or going to the bank to get a mortgage. Socially acceptable racism through the 1960 s allowed homeowners associations to discriminate against families of color to preserve ‘whiteonly’ communities = REDLINING #ADDHASHTAG | @ADDHANDLE

1938 Brooklyn Community Zoning Map Brownsville, Bed. Stuy, Bushwick Prospect Park, Midwood, Sheepshead Bay

Lasting Impact of Redlining and Discriminatory Housing

Influence of Redlining on the Housing Landscape • • Intentionally Segregated Neighborhoods Underfunded Schools Lack of Access to Quality Healthcare and Nutrition Inadequate Public Transportation Limited Economic Opportunities Non-Traditional Sources of Income Rampant Gentrification

Homeownership by Race

Our 2020 Vision: Mend the Gaps! Wealth and Income Gap • • • Tax Justice Living Wages Family-Friendly Workplaces Access Gaps • • Democracy Healthcare Citizenship Housing

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Recap We learned: Basic information on income, wealth inequality, and the racial wealth gap The creation and perpetuation of the racial wealth gap

Sources • Institute on Assets and Social Policy https: //heller. brandeis. edu/iasp/pdfs/racial-wealth-equity/racial-wealthgap/racial-wealth-gap-why-policy-matters. pdf • The Effects of the 1930 s HOLC “Redlining” Maps http: //www. eh. net/eha/wp-content/uploads/2017/08/Aaronson. pdf • Brownstoner - https: //www. brownstoner. com/history/redlining-racismbrooklyn-neighborhoods-bed-stuy-williamsburg-2/ • Urban Institute - http: //apps. urban. org/features/wealth-inequalitycharts/

Thank you! For questions email: Catherine Gillette Grassroots Mobilization Coordinator cgillette@networklobby. org 820 First Street NE, Suite 350, Washington, DC 20002 | 202 -347 -9797 info@networklobby. org | www. networkadvocates. org NETWORKLobby